Baroness Goldie: My Lords, if I may say, perhaps unusually, for a very fine debate, that was a very fine closing speech. We have had an enlivening and, perhaps more importantly, enlightening debate. As I have come to expect from a House that is abundant with former Ministers and former heads of our Armed Forces, there have been many fascinating points of illumination and, predictably, points of challenge. I will endeavour to respond to these in turn shortly.
First, however, I congratulate my noble friend Lord Soames on an impressive feat of foresight: namely—assuming his Mystic Meg demeanour—by arranging for this debate to coincide with some prominent arrivals and departures at the MoD. Many of your Lordships, led by my noble friend Lord Soames, have already paid generous homage to Ben Wallace. I thank my noble friend for his kind remarks about Ben as well as his kind remarks about my colleague James Heappey and me.
I will start by paying my own tribute to Ben Wallace. He and I first met when as rookie MSPs we stumbled across the threshold of the Scottish Parliament in 1999. I found him then to be a decent, principled, compassionate man, and my opinion remains the same today. He has been a steadfast colleague for the past four years, and he now bears the accolade of being the longest-serving Conservative Defence Secretary since my noble friend’s grandfather Winston Churchill. As Secretary of State, Ben oversaw many things: the evacuations of Kabul and Sudan, the Armed Forces’ response to Covid and the majestic “Queen Elizabeth” leaving these shores for a successful seven-month deployment to the Indo-Pacific. At the same time, his leadership gave us the Global Combat Air Programme, AUKUS—to which some of your Lordships referred—a new shipbuilding tsar and the Defence and Security Industrial Strategy. These legacies will all secure thousands of British jobs, not least for generations of young people. Also, as many of your Lordships acknowledged, there has been the immense contribution to Ukraine. As the Prime Minister said in his generous tribute, Ben
“saw, before others did, what Vladimir Putin’s true intentions in Ukraine were”.
It is worth pausing briefly to reflect on the scale of the assistance his not just clear-sighted but far-sighted response generated. In the past 18 months, we have gifted a huge amount of equipment to Ukraine. We have sent logistics vehicles, search and rescue helicopters, helmets and metal detectors, not to mention all the  missiles, armoury and munitions that it needs in its struggle. We have led the international response, together with Canada, Denmark, Finland, Sweden, Norway, New Zealand, Lithuania, the Netherlands and Australia. We have trained more than 23,000 Ukrainians.
I particularly thank the Lord, Lord Coaker, for his warm recognition of that contribution by Ben Wallace and his affirmed alignment with the United Kingdom Government’s approach. As Putin has continued his savage assault, the UK's support has never wavered, and that is testament to Ben Wallace’s leadership. Our new Secretary of State for Defence has been absolutely clear that this steadfast support for Ukraine will continue for as long as it takes.
But Ben Wallace did something else: he oversaw the most radical review of defence policy since the end of the Cold War. In the process—I have seen this at first hand—he turned the MoD into a modern, proactive, forward-thinking and threat-led organisation. Next year, we will spend more than £50 billion on defence for the first time in our history, and this Government have committed—it is a laudable commitment, as noble Lords have noted—to increasing spending yet further over the longer term to 2.5% of GDP as we improve the fiscal position and grow our economy.
I am very grateful to the noble Lord, Lord Liddle, for his helpful recognition of the economic and financial realities that confront the Government. My noble friend Lord Balfe reiterated them, and they were powerfully and eloquently affirmed by the noble Lord, Lord Coaker. We unfortunately do not live in a perfect world. If we did, the defence budget would be infinite and we would never cease to have things to spend money on, but in the real world things are very different. The Government have put their money where their mouth is, and the record is there. I would say to the noble Lord, Lord Dannatt, that there is a healthy equipment budget for the Army, and, yes, we shall keep the number of CR3s under review.
The conclusions in the original Defence Command Paper remain right. Russia was and is the greatest threat to European security; the noble Lord, Lord Alderdice, was quite correct to refer to that. China’s rapid military modernisation and growing assertiveness in the Indo-Pacific and beyond pose an increasing challenge to us all. But Ben Wallace was clear that, as the threat moved from greater competition to active contests and accelerated volatility, defence must move with it. That is why we published the refreshed Defence Command Paper this July. I say to the noble Lord, Lord Houghton, that I would turn to that source more readily than to any other publication. It is certainly not an exercise in deception. My noble friend Lord Risby acknowledged the significance of that Command Paper refresh.
Not even the greatest champions of that paper, and I am one of them, would hail it as a sparkling work of engaging prose with dazzling announcements, but that is not its purpose. Instead, it is grounded, sensible and sober. In drawing on the experience of its ministerial team to look under the hood and fine-tune the engine, we are endeavouring to make the whole machine run better. The noble Lord, Lord Dannatt, wisely urged us to deal with the real world, and that is what this  Command Paper refresh seeks to do. A number of themes from the paper have a direct bearing on this debate, so let me just touch on some of the most salient.
First, the paper rightly acknowledged the contribution of our people. I want to spend a little time on that, because it was an aspect raised by many of your Lordships. My noble friend Lord Soames said that they are a unique asset and that that does not happen by accident, and I entirely agree. The noble and gallant Lord, Lord Craig, said that nothing else is anything without our people, and I absolutely agree with that, too. I am very grateful to the noble Lord, Lord Snape, who has sadly had to withdraw because he is unwell. He mentioned women; women are a very important component of our Armed Forces.
I thank noble Lords for the warmth of their remarks about our people. The noble Lord, Lord Touhig, referred to the continuous attitude survey and what it indicated about morale. That was echoed by my noble friend Lady Fraser of Craigmaddie, who spoke particularly of accommodation. I reassure both noble Lords that we take these issues very seriously. There is an accommodation programme under way for new investment and reinvestment. We are seeing that delivering improvement, but my noble friend Lady Fraser is quite right. The circumstances that she described are unacceptable, and we are doing everything in our power to deliver improvement.
I assure my noble friend Lord Lancaster, for whom I have the greatest respect and whom I thank for his tremendous contribution on our reservists, that I see them as a vital component of our personnel and, in the case of the Army, with a particular relevance to future soldiers. I say to him and to others who are concerned about the future of our personnel that I believe that the Haythornthwaite review offers a very sensible and encouraging way forward, because it is building on resilience and flexibility. That is to help the work environment of the people we have and to make a more attractive career offer to those whom we need to recruit. My noble friend Lord Trenchard asked whether we will have 73,000 regulars. The answer is yes. We will have a whole force of more than 100,000 personnel in the Army—73,000 regulars and 30,100 reserves. I make clear that the Chief of the General Staff has not retired. He remains a much-valued colleague.
The Command Paper acknowledged all that I have been talking about, because our men and women are our greatest capability, the jewel in our defence crown. As I have indicated, our reforms give them greater career flexibility and, I hope, a more compelling and competitive incentive package.
The noble and gallant Lord, Lord Walker, gave a most captivating narrative of just what our personnel do and the diversity of activity that we ask of them. I felt that it was a little male-orientated, with the greatest respect, and observe that our women play a singularly important role in these endeavours as well.
The second thing that the DCP refresh does is strengthen our scientific and technological base. We are world leaders in specific areas, and DSTL is revered  globally. However, to continue outmatching our adversaries we need to stay ahead of the curve, leading the way not just in digital in data but in emerging scientific fields such as artificial intelligence and quantum robotics. We must also pull R&D breakthroughs into the front line. Quite often, sourcing a £100 solution may stop 100,000 threats in their tracks. That is the world that we live in.
The paper also sets up a more sustainable partnership and relationship with industry. The noble Lord, Lord Wallace of Saltire, rightly raised how we approach procurement. He is correct that it is folly to hold out for the 100%-perfect solution if the acceptable and workable 80% solution is there on the shelf. We are very much aware of that, and that is part of the new approach. However, because of the exponential pace of technological advance, we do not have time to wait. We need to upgrade kit rapidly, we need to respond to the relentless rhythms of the battlefield, and we need to ditch acquisition programmes that drag on for decades. We are now setting maximum delivery periods of five years for hardware and three years for digital programmes, which I am sure your Lordships will find refreshing. For the avoidance of doubt, our nuclear programme is not in contravention of the nuclear non-proliferation treaty. We support that treaty.
We are adopting a global campaigning approach where it is the character of the adversary and their threat, not the geographic focus, that will drive our enduring campaigns. We have established a global response force. Ready, integrated and lethal, it will better cohere forces from across land, sea and air, space and cyber to get in first in response to unpredictable events around the world. All these domains are critical, but it is the aggregate cohesion of them that packs the punch. I reassure noble Lords who are concerned about individual domains and services that we will keep a close eye on these separate components.
The Command Paper also recognises that, in an interconnected world, we are unlikely to act alone. Partnerships are critical to our security and prosperity. Many of your Lordships raised this. In future, we will be allied by design and national by exception. That is not some meaningless platitude. Frankly, it is sound pragmatism. Our support for NATO will remain ironclad, but we will continue to prioritise our core relationships. Deepening relationships with like-minded partners is extremely important. We have invested in our global defence network. We are improving its core communications and co-ordinating our defence attachés, who are a vital component of what we do globally within our intelligence functions. All of this keeps us safe and helps us contribute to global stability, but, very importantly, as my noble friend Lady Fraser observed, it brings benefit to the whole of the UK in myriad ways.
I am conscious of time, so I will deal with some of the particular points that have been raised. I do not promise to get through them all—I have a kind of Encyclopaedia Britannica here—but I will undertake to write if I cannot cover all the points I need to refer to.
The noble Baroness, Lady Smith of Newnham, raised the important issue of China and I am very grateful to her for doing that because, to my surprise,  it did not feature prominently. The review refresh has defined China as an epoch-defining and systemic challenge; it has implications for almost every area of government policy and the everyday lives of British people, as many of your Lordships are not only aware but may have experienced. We will strengthen our national security protections, align and co-operate with partners, and engage where it is consistent with our interests. It is important to say that, where it is consistent with these interests, we will engage constructively with the Chinese Government, with business and with people, and co-operate on shared priorities, but wherever the Chinese Communist Party’s actions and stated intent threaten our interests, we will take swift and robust action to protect ourselves and our interests.
The noble Baroness also raised the matter of MoD hacking. This is a very serious issue, which we of course take seriously. We have robust digital and cybersecurity safeguards, checks and barriers. The matter is under investigation. I do not know to what extent I am able to disclose further information, but I will make inquiries.
My noble friend Lord Soames, supported by my noble friend Lady Helic, raised the important issue of the western Balkans. I reassure the House that we remain committed to supporting regional security and stability, and to building resilience against malign influences. We continue to contribute to KFOR and the NATO headquarters. We have extended our contribution to KFOR—to the intelligence, surveillance and reconnaissance task unit, and to the strategic reserve force—until at least 2026. I reassure my noble friend Lady Helic that we strongly support the critical role that EUFOR continues to play in Bosnia and Herzegovina, and we are exploring how to increase our bilateral presence in Bosnia and Herzegovina and our co-ordination with the EU on the ground.
Very recently, the Bled Strategic Forum was held in Slovenia and attended by my noble friend Lord Ahmad of Wimbledon and the noble and gallant Lord, Lord Peach. I have had a report back, and it seems that it proved a very useful forum, not just for the discussion of the particular items envisaged but as an important opportunity for genuine engagement among the member states. As your Lordships will be aware, Slovenia is now an important presence as a non-permanent member of the Security Council. I say to my noble friend Lady Helic that I understand that, within Europe, Slovenia wants to focus on Ukraine, the western Balkans and Cyprus, and thematic priorities include women, peace and security, and conflict prevention.
On the specific issue of training for the Ukrainian soldiers in relation to women in conflict and violence, I am going to ask the specific question to get more information. I shall write to my noble friend.
On procurement, a subject raised by a number of your Lordships, including the noble Lords, Lord West and Lord Lee of Trafford, we will respond to the Select Committee report that is under way. We dispute that defence procurement is broken; we say that it is not broken, and there is evidence that we are on target with a vast change in how we are dealing with procurement. The Type 26 programme has not had poor oversight. We have made, through decisions on E-7, savings of £720 million, and with the uplift of  £5 billion over the next two years we are continuing to ensure that we will deliver world-leading equipment to provide our people with the capabilities they need.
The important reforms made within the department in procurement, in addition to setting time limits for delivery of hard equipment at five years and digital programmes at three years, have vastly improved the professionalism of the senior responsible owners and programme directors. We are engaging much earlier in strategic conversations with industry and we are keeping an eye on exportability of whatever we decide we need.
The noble Lords, Lord Browne of Ladyton and Lord Snape, raised the matter of recruitment. The Army’s recruiting partnering project continues to recruit in large numbers the talent we need, and it is a diverse talent, to maintain a competitive advantage. That is demonstrated by achieving between 98% and 100% of the recruitment target between 2019 and 2022, even during the pressures of the Covid pandemic.
My noble friend Lord Tugendhat raised the issue of stockpiles. I can confirm that contracts worth over £285 million have been placed since March 2023 in support of increasing and maintaining stockpile levels through investment with industry. My noble friend also raised the issue of the Baltic states. I can confirm that we are an important contributor to JEF, and I thank the noble Lord, Lord Mountevans, for noting that. We maintain our operational efficacy at all times.
I still have a great pile of notes, which no doubt would be of riveting interest if I had time to read them, but they are going to lead me into trouble with the Whips, so I think I had better look to bring my remarks to a close. This has been a genuinely interesting and stimulating debate. Noble Lords have asked whether this is something more than a courtesy opportunity for a discussion—yes, it is. We play close attention to the views expressed in this House, and these views will be used to inform and make us reflect on how we approach what we are doing within the MoD.
As our former Defence Secretary Ben Wallace understood, in a fraught world defence has never been more important. A number of your Lordships emphatically reaffirmed that. Our previous Defence Secretary accelerated the MoD to become a world-class organisation, and that is reflected by the recently published refreshed defence Command Paper, which provides a serious road map for our future and has had a good reception—people regard it as a very solid piece of work. My new Secretary of State wants to make sure that progress continues. I have had very constructive and cordial engagement with him. Our task in the MoD, led by our new Secretary of State, Grant Shapps, is quite simply to ensure that progress continues and that our magnificent Armed Forces continue to deliver for our nation.